The Shanghai Stock Exchange officially released the Guidelines on Trading Suspension and Resumption for Listed Companies Planning for Material Events (the "Guidelines") on May 27, 2016, which have reinforced the obligatory prudence required of listed companies and other related parties while satisfying the basic needs of listed companies to suspend stock trading.
Three major adjustments and improvements have been made in the Guidelines, including the expansion of coverage of suspension regulation, strict control of suspension duration, and the refinement of requirements for information disclosure during suspension and procedures for suspension extension.
In the aspect of strict control of suspension duration, the Guidelines stipulate that for planning of major asset restructuring, the suspension duration shall not exceed 3 months in principle, or 5 months for consecutive plans of restructuring after suspension; for planning of non-public offering, the suspension duration shall not exceed 1 month in principle. Besides, the Guidelines also specify that companies changing the restructuring target during suspension shall resume trading within the specified time limit. After 3 months since the date that the suspension commences for major asset restructuring, the companies in question shall not change the target for restructuring to extend suspension.